Peruvian Stocks Sink 5% in Extension of World’s Worst Selloff

Peruvian stocks slumped, extending
the world’s worst decline in 2013, as metals dropped after the
Federal Reserve said it may pare monetary stimulus.

The Lima General Index (IGBVL) fell 5 percent to 15,739.83 at 1:33
p.m. in Peru, extending its decline this year to 24 percent.
Brazil’s Ibovespa has dropped 23 percent in the same period.

“Mining companies are leading the drop in the local
market,” Marco Contreras, an equity analyst at Lima-based
Kallpa Securities, said in a phone interview. “Companies linked
to domestic demand are also suffering from the comments made by
the Fed.”

Copper fell as much as 3.3 percent today in New York and
gold tumbled 5.2 percent after the Fed said it may reduce bond
purchases that have fueled gains globally. The two metals
account for half of Peru’s exports.